Analyst Highlights FanDuel’s Impact on Flutter’s Growth

Currently, FanDuel holds a leadership role within the betting and gaming vertical across the United States. The Flutter Entertainment-owned brand continues to enjoy success and expands across the country while growing its customer base. A testament to FanDuel’s success isn’t only the growing player base but its outstanding financial performance which ultimately contributes toward the growth of Flutter as well.

In a recent report to clients, a leading analyst acknowledged the positive impact of FanDuel on its parent company. Estelle Weingrod, a lead analyst with J.P. Morgan, wrote a note to clients which was released by CDC Gaming Reports, outlining that she upgraded the shares of FanDuel to “overweight.” Additionally, the leading analyst set a price target of $271, a figure that shows an uptick of 22.5%.

Weingrod explained that FanDuel has a growing position within the betting and iGaming vertical in the country. She wrote: “superior product/tech stack continues to drive enhanced hold rates through leading adoption of high-margin products (parlays, live (betting)) and improve generosity effectiveness, leading to improved engagement and monetization of its customer base.”

FanDuel Expected to Continue Growing

The Morgan analyst acknowledged the exceptional performance of FanDuel throughout 2023. She explained that this growth reaffirmed the brand’s leadership position within the US market while at the same time “demonstrating leaps of progress and the resilience of the business model … which should drive further upside potential for the shares.”

The expert analyst predicted additional expansion for FanDuel within the online gambling sector. She said that the vertical remains “underappreciated by the market” but predicted the brand may gain further market share within iGaming. Speaking about the gradual expansion of legal online gambling, Weingrod wrote J.P. Morgan “now feel increasingly confident about the TAM opportunity crystallizing.”

Earlier this month, Flutter hinted it is prepared for internal changes. The announcement comes ahead of the planned departure of David Lazzarato, who confirmed his intention to step down during Flutter’s upcoming Annual General Meeting (AGM) planned in May.

More recently, the Office of Lottery and Gaming (OLG) sent a letter to the DC City Council confirming that OLG approved the request of Intralot to designate FanDuel as the subcontractor of GambetDC. In the letter, OLG’s executive director, Frank Suarez, explained that FanDuel has significant experience in a number of markets. He predicted that this decision would help boost revenue and customer engagement at the same time.